ADVERTISEMENT FEATURE


90 percent of multinational companies with multiple providers seek one single provider across all markets


Citi’s survey shows that only 39 percent


of companies questioned have a single global provider, these companies use a patchwork of programmes to obtain global coverage. However, 90 percent of these organisations would like to transition to having one commercial card provider, offering the opportunity to manage corporate expenses in a global, more compliant way. A globally-accepted card also enriches the


user’s experience: when entertaining clients, an employee should be confident that a merchant will accept their card, for instance. Furthermore, using personal cards for business expenditure is more likely to lead to non-compliant spending, as these have fewer controls. But having one commercial card programme – through a single global provider, accepted wherever, whenever – can ensure that each transaction is recorded.


Digitisation for global reporting and tracking The blueprint’s third element is digitisation. By mandating compliance and having a centralised programme, commercial cards can provide global consistency and coverage. Before Citi conducted its study, internal data showed that 97 percent of cardholders applied for their commercial card, viewed card statements and updated personal details online. Unsurprisingly, corporates recognised that digitisation – principally through the automated reconciliation of payments – was a key driver of efficiency. Indeed, Citi’s study found that 63 percent of surveyed companies view enhanced data and reporting functionality as the key future


priority for their commercial card programme. Companies require highly powerful transaction- management and reporting tools to support allocation and reconciliation needs, with real- time data visibility to help ensure programme oversight. These systems must also feed into companies’ expense management tools to gain a holistic view of total global spend. Such information can help determine optimal


merchants and suppliers, and highlight areas for consolidation. What’s more, it can be a powerful negotiating tool with current suppliers, ultimately driving down costs.


Capturing and analysing employees’ spend


is only half the battle, however. Given the increasing desire to understand spending patterns, companies should also track metrics against industry benchmarks, to help measure their programme’s performance. Yet only half of companies surveyed track spend against industry benchmarks, with even less tracking declines (14 percent) or delinquencies (9 percent). Clearly, opportunities remain for companies to further improve how they use the data captured.


Best-in-class commercial card programme Citi’s blueprint for success provides a way forward for administrators managing commercial card programmes. With economic pressures forcing many companies to boost profitability, managing expenses globally can have a significant impact on a company’s bottom line. Indeed, Citi’s survey shows that in


76 percent of companies, the treasury department is playing a larger role in the choice


of commercial card provider – something that should help further integrate commercial card systems into an organisation’s financial set-up. A best-in-class commercial card


programme should therefore be seen as a powerful tool in a company’s wider business strategy. A successful programme is globally-compliant, centralised and digital.


Key findings


• Over 50 percent of companies see better global compliance as a key current and future priority.


• 90 percent of multinational companies with multiple providers seek one single provider across all markets.


• 63 percent of companies view enhanced data and reporting functionality as their key future priority.


• 50 percent of companies do not currently use metrics to track their programme’s spend against industry benchmarks.


• 76 percent of companies say their corporate treasury team is involved in the commercial card decision-making process.


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o read the full report, go to citicommercialcards.com


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